QuickBooks Problem-allocation of payment

QuickBooks Problem-allocation of payment

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I have a client that runs a small business and uses a QuickBooks app on their phone. They have a problem regarding the allocation of receipts from a customer. For example:

Customer is not invoiced (to save time and client does not wish to raise an invoice) for training and payment is received and allocated to that customer

Same Customer is then invoiced for for further work but the payment for the above is DEDUCTED from this invoice.

How to they stop the invoice being altered like this 

Many Thanks

Replies (11)

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Scalloway Castle
By scalloway
04th Aug 2019 08:13

I would raise a dummy invoice to cover the payment made earlier.

Thanks (2)
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By Sandnickel
04th Aug 2019 09:09

Agree with Scalloway. At the moment you're only recording payments on account, therefore you need to raise an invoice anyway to correctly record the income on the p&l.

Thanks (1)
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By Red42
04th Aug 2019 09:19

OK, thanks for replies. If that is the only way... Client doesn't wish to raise individual invoices though.. Balance can be left as a credit at year end and accountant can raise dummy invoice then, but that is not ideal solution. Client simply wishes to stop payments on account being deducted from additional invoices raised by themselves.

Thanks (1)
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By johnhemming
04th Aug 2019 09:29

Perhaps there could be two accounts. One for the cash receipts and the other for invoiced work.

Thanks (2)
blue sheep
By NH
04th Aug 2019 09:55

If you are not raising an invoice just post the amount directly to sales in the p&l, its a pointless excercise to post to the sales ledger if there is no invoice being raised

Thanks (2)
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By Peter Anderson
05th Aug 2019 09:59

I think QBO may be auto allocating the funds received, you can stop it by going to the Advanced part of Settings and turn off Automatically apply credits.

Thanks (2)
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By kiwilondon99
05th Aug 2019 10:27

AND are you ,correctly, recording VAT on these receipts on account/no invoice, amongst other matters. How is the cash in hand business being reported ?

Thanks (1)
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By alec247
05th Aug 2019 10:40

Surely in QB you just record the un-invoiced payment as a 'Sales Receipt' rather than as a received payment and corresponding invoice?

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Replying to alec247:
Scalloway Castle
By scalloway
05th Aug 2019 13:14

This is not easy to do in Quickbooks, unlike Sage. I faced the same problem recently. Quickbooks wants to know who the money came from and automatically tries to allocate it to an existing customer. I got over it by setting up a recurring entry for cash income.

Thanks (1)
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By SXGuy
05th Aug 2019 12:04

they stop it, by raising an invoice, if there is no invoice, then payments would get credited to a client account, and then because you have raised a new invoice, its allocating that credit to the invoice.

Thanks (1)
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By carnmores
12th Aug 2019 22:51

Put it to the requisite client, then when the full invoice is raised go to the deposit and click unmatched in small type on top left or use match credit routine. N

Thanks (1)